The Inventory at June 1 and Costs Charged to Work

question 173

Essay

The inventory at June 1 and costs charged to Work in Process-Department 60 during June are as follows:​ During June, 32,000 units were placed into production and 31,200 units were completed, including those in inventory on June 1. On June 30, the inventory of work in process consisted of 4,600 units that were 40% completed. Inventories are costed by the average cost method, and all materials are added at the beginning of the process.Determine the following, presenting your computations:
(a)Equivalent units of production for conversion cost
(b)Conversion cost per equivalent unit and material cost per equivalent unit
(rounded to the nearest cent)
(c)Total and unit cost of finished goods completed in the current period
(d)Total cost of work in process inventory at June 30

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Definitions:

Total Product Curve

A graphical representation of the production function, showing how the quantity of output depends on the quantity of the variable input for a given quantity of the fixed input.

Fixed Input

An input whose quantity is fixed for a period of time and cannot be varied (for example, land).

Capital

Resources, including finances and assets, used by businesses to fund their operations and investments.

Variable Input

An input whose quantity the firm can vary at any time to increase or decrease production.